"If we’re going to use free services, we have to realize that nearly all bets are off."

That's true, but the "if" at the beginning of the sentence is the major factor. If these kinds of services begin using my information or my content in ways I disagree with, I'm free to leave at anytime and I will exercise that right unreservedly.

I'd rather pay upfront to use a service than become an unwitting walking advertisement, especially without compensation.